'Billable Hour' Under Attack

In Recession, Companies Push Law Firms for Flat-Fee Contracts

With the recession crimping legal budgets, some big companies are fighting back against law firms' longstanding practice of billing them by the hour.

The companies are ditching the hourly structure -- which critics complain offers law firms an incentive to rack up bigger bills -- in favor of flat-fee contracts. One survey found an increase of more than 50% this year in corporate spending on alternatives to the traditional hourly-fee...